EU to investigate Apple, Starbucks over tax breaks

Will center on Ireland, Netherlands and Luxembourg

By

TomFairless

BRUSSELS — European Union regulators said Wednesday they have opened formal investigation into the tax affairs of Apple Inc. and Starbucks Corp. and a Luxembourg-based division of Fiat, amid concerns that multinational companies enjoy sweeter tax deals than are permitted under EU law.

The probe by the European Commission, the EU’s executive arm, will center on generous tax arrangements granted to those global corporations in three EU countries — Apple
AAPL, -1.54%
in Ireland, Fiat Finance and Trade
IT:F
in Luxembourg and Starbucks
SBUX, -1.33%
in the Netherlands. The commission worries that the companies’ tax deals may amount to illegal state aid.

The probes will focus on so-called transfer-pricing arrangements, which can help minimize a company’s tax bill.

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